CSE posts welcome recovery

The Colombo stock market yesterday produced a welcome recovery and moved to positive territory in an apparent rebound in investor sentiment. 

The benchmark ASPI gained by 111 points or 1.21% to close at 9,333 points, highest in five months. The active S&P SL20 gained by nearly 1% or 23 points. Turnover however didn’t match sentiment and remained lacklustre at Rs. 1.45 billion involving 78.4 million shares. The market also saw net foreign inflow.

Asia Securities said the indices witnessed an upbeat session as investors accumulated positions in banking sector stocks taking cues from the recent appreciating trend of Sri Lankan Rupee. SAMP (+3.7%), COMB (+3.1%), NDB (+6.8%), HNB (+7.3%), HNBX (+8.8%), SEYBN (+7.1%), SEYBX (+8.5%), PABC (+4.8%), and NTBN (+3.1%) saw steady domestic buying during the session. 

On the other hand, RAL (+3.8%), RICH (+5.7%), VONE (+3.3%), CALT (+3.1%), and PLR (+3.9%) witnessed renewed buying from investors. 

Turnover was led by SAMP (Rs. 290 million), and COMB (Rs. 149 million). 

The ASPI trended upwards throughout the session and closed out at a four-month high at 9,334 (+111 points). 

HNB (+20 points), SAMP (+17 points), and COMB (+17 points) were the top contributors to the ASPI during the session. The breadth of the market was positive with 130 price gainers and 62 decliners.

Asia also said foreigners recorded a net inflow of Rs. 48 million. Net foreign buying topped in EXPO at Rs. 22.8 million and selling topped in HNB.N at Rs. 14 million.

First Capital said the buying momentum continued yet another day while the broad market witnessed a recovery as investor sentiment improved on the back of the significant increase in BOP of the country to $ 211 million for January 2023 while, the high probability of securing the IMF bailout by mid-March 2023 further supported the market sentiment. 

The index displayed a sharp upswing and continued to climb higher to end the day at a 5-month high of 9,334, while recording the highest intraday gain of 111 points in nearly 2-weeks. Retail investor participation was observed in the Banking sectors (mainly HNB, SAMP and COMB) ahead of the monetary policy review meeting which is scheduled for tomorrow. Hotel sector counters also witnessed active participation, as tourist arrivals continued to record over 100,000 mark for the second consecutive month in the year. 

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, National Development Bank and Commercial Bank. Mixed interest was observed in Melstacorp, Central Finance Company and Expolanka Holdings whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Renuka Agri Foods.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) whilst the sector index gained 4.48%. The share price of Sampath Bank increased by 

Rs. 1.90 (3.65%) to Rs. 53.90. The share price of Commercial Bank gained Rs. 2 (3.08%) to

Rs. 67.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.31%. The share price of Melstacorp dipped by 10 cents to Rs. 58.90.

Central Finance Company and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Central Finance Company recorded a gain of Rs. 2 to 

Rs. 72. The share price of Expolanka Holdings declined by Rs. 2 to Rs. 174.75.